Further harmonization of EU VAT rules as well as a simplification of administrative obligations have been set as goals under the framework of the ViDA reform.
In essence, the ViDA reform intends to modernize the current EU VAT regime through three pillars.
Pillar 1: mandatory, digital invoice data reporting and electronic invoice issuance for intra-Community transactions (as of 1 July 2030)
Pillar 2: rules concerning platform economies (short-term accommodation rental as well as the platform-based supply of transport services)
Pillar 3: rules regarding the single VAT registration
Under the ViDA framework, a mandatory format (EN6931 standard) will be introduced. This applies to electronic invoices (falling under Pillar 1, i.e. intra-Community sales, B2B supply of services, the supply of services subject to reverse charge rendered by non-established entities, supplies subject to triangulation simplification, and the supply of energy to energy traders).
Furthermore, as of 1 July 2030 the ViDA reform will introduce a new, uniform definition of electronic invoices. Because of this, only invoices issued in a structured format can qualify as electronic invoices, regardless of the type of supplier or supply.
In this context, it must be noted that “basic” invoices issued only in .pdf format are not expected to meet the “invoice issuance in a structured format” requirement.
Although the ViDA reform was intended to come into effect gradually between 2025 and 2028, the pillars will gradually become operational between 2027 and 2035.
Regardless of the ViDA reform, many Member States have already introduced electronic invoicing rules. Consequently, consideration should be given as to whether the new VIDA rules will have any effect on existing obligations and practices.
KPMG experts are available to support you in achieving compliance with VIDA’s reform obligations.
